Negligent Misrepresentation
Negligent Misrepresentation occurs when a Defendant makes a careless representation that is untrue. In order to prove Negligent Misrepresentation, the Plaintiff needs to rely on it and suffer damages such as financial losses. There also needs to be a duty of care owed by the Defendant to the Plaintiff. Negligent Misrepresentation falls under tort law. As such, claiming this as a cause of action is available to Plaintiffs where their damages do not flow from a contractual breach.
Duty of Care
One of the hardest things to prove in negligent misrepresentation cases is that there is a special relationship between the Plaintiff and Defendant.
Here are some indicators that support a special relationship:
- the person giving advice is an expert
- the advice is given in a commercial setting
- it is foreseeable the person receiving the advice would rely upon it
- the advice was intended to be acted upon and not merely opinion